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Moody's: Negative Interest Rate Region Banks To Lag US Banks In Profitability

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Mark Melin
Published on
Updated on
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Despite improving economic conditions in Europe, regional EU banks along with their Japanese counterparts are expected to lag the profitability of their US competition, a Moody’s report predicts. In part, the analysis may point to a nuanced relative value trade, but also highlights the impact negative rate policy has in yield sensitive industries – and how the impact can be initially cushioned but ultimately there is a point where the market catches up.

Negative interest rate banks negative rate negative rate policy
Negative rate policy is impacting banks on a regional and size basis

Negative Rate Policy will hurt EU and Japanese banks, while US banks...

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Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.